IEMG ETF

Emerging market ETFs soared to a two-and-a-half-year high, driven by new Chinese stimulus, a big Fed rate cut and hopes of further easing, and a weak dollar.

The iShares Core MSCI Emerging Markets ETF tracks small, mid, and large-cap emerging market stocks, primarily in China, India, and Taiwan. The ETF has underperformed the SPDR S&P 500 ETF Trust in 2024 and over 3, 5, and 10-year timeframes. This underperformance has resulted in IEMG, offering significantly higher earnings and dividend yields relative to the SPY.

The iShares Core MSCI Emerging Markets ETF is recommended to be sold as the negative factors outweigh the positive ones. Despite having a low expense ratio, a large number of holdings, and a significant dividend yield, the fund's heavy concentration in China and Taiwan increases correlation with both domestic and international indexes, posing geopolitical risks.

The iShares Core MSCI Emerging Markets ETF ticks all the boxes if you want exposure to emerging markets. There are some potential positive catalysts on the horizon in 2024. Risks remain, but are reducing.

The meeting between Biden and Xi Jinping contributes to easing some investor fears, which in turn benefits emerging markets. A weak dollar could sustain an upside for iShares Core MSCI Emerging Markets ETF. However, geopolitical tensions and economic challenges pose risks to IEMG's holdings and sustainability of upside.

Emerging Market currencies have rebounded, boosting the iShares J.P. Morgan USD Emerging Markets Bond ETF and iShares Core MSCI Emerging Markets ETF. IEMG is a large ETF with an attractive valuation and low cost, making it a good choice for long-term investors. The technical setup for IEMG remains lackluster, and improvement in the chart and price trend is needed for an upgrade.

Hartford Funds launched its Hartford Multifactor Emerging Markets ETF (ROAM) back in 2015. The multifactor fund tracks an index that targets emerging market stocks based on certain factor exposures while also seeking to reduce volatility by 15%.

Emerging markets have been disappointing in the past decade, but there is potential for a turnaround due to cheap valuations and underinvestment. iShares Core MSCI Emerging Markets ETF is a good option for investors looking to diversify internationally, with its broad range of emerging market companies and low cost. The IEMG ETF has a lower expense ratio, tracks large, mid, and small-cap companies, and has a higher ESG score compared to its peers, making it stand out among other emerging market ETFs.

Today, State Street Global Advisors cut the fees on 10 of its already-rock-bottom-priced “Portfolio” ETFs representing core asset classes. Most notably, the $19.7 billion SPDR Portfolio S&P 500 ETF (SPLG) saw its expense ratio decreased by one-third.